https://www.taxtmi.com/caselaws?id=431747 Receipts from sale of Microsoft retail software products to Indian distributors were treated as payment for a copyrighted article, not a transfer of copyright or reproduction rights, and therefore were not royalty under section 9(1)(vi) of the Income-tax Act or Article 12(3) of the India-USA DTAA. Receipts from cloud services were likewise held outside the royalty definition because the subscriber obtained only online access to infrastructure and applications, without any right to use equipment, software copyright, or reproduction rights. On both issues, the tax additions based on royalty characterization failed, and consequential relief on TDS credit followed in accordance with law. en-us Tue, 30 Aug 2022 00:00:00 +0530 Tue, 20 Dec 2022 18:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=431747 Receipts from sale of Microsoft retail software products to Indian distributors were treated as payment for a copyrighted article, not a transfer of copyright or reproduction rights, and therefore were not royalty under section 9(1)(vi) of the Income-tax Act or Article 12(3) of the India-USA DTAA. Receipts from cloud services were likewise held outside the royalty definition because the subscriber obtained only online access to infrastructure and applications, without any right to use equipment, software copyright, or reproduction rights. On both issues, the tax additions based on royalty characterization failed, and consequential relief on TDS credit followed in accordance with law. Case-Laws Income Tax Tue, 30 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=431747